9 AIR TRANSPORTATION
FREIGHT TRANSPORTATION
Air cargo is carried in the belly-hold of passenger aircraft, in passenger/cargo
combination or in all-cargo aircraft. Canada's domestic air cargo market
is deregulated; as such, there are no restrictions on routing, capacity
or price. Transborder and international air cargo services are covered
by bilateral air agreements, other international agreements and national
policies. Some all- cargo airlines do provide charter services outside
of Canada on behalf of foreign-based airlines but have little presence
on their own in international markets. However, a significant amount
of cargo is carried in the belly-hold of passenger aircraft.
There are several operators in Canada providing dedicated all-cargo
service, with a total of 50 aircraft. In addition, Air Canada provides
air cargo service as part of its scheduled passenger air services. Cargo
revenues accounted for six per cent of its revenues in the first three
quarters of 2003. In the North, Canadian North and First Air also provide
air cargo services, along with numerous other smaller operators.
Table A9-11 in the Addendum shows the volume of goods carried by Canadian
air carriers from 1993 to 2002. Overall, the number of tonnes carried
remained substantially the same in 2002 as in 2001. The strongest growth
was registered in international markets, which increased by five per
cent in 2002. This was counterbalanced by an 11 per cent decrease in
cargo carried by air to the United States. Addendum Table A9-12 shows
the operating revenues generated by goods carried by Canadian air carriers.
Between 2001 and 2002, domestic revenues dropped by five per cent, while
international and transborder revenues (combined) decreased by three
per cent.
Table A9-13 in the Addendum compares the value of goods shipped by
air versus other modes. From 1997 to 2000, air cargo trade between Canada
and the United States rose steadily, but since then has decreased each
year, declining by $14.3 billion, or 30 per cent over the past three
years. This loss was higher in the import than the export sector. Air
cargo's share of total Canada-U.S. trade was 6.2 per cent in 2003, down
from a high of 8.1 per cent in 2000.
As Addendum Table A9-13 shows, Canada's air trade with countries other
than the United States remained essentially the same in 2003 as in 2002
(a 0.6 per cent decrease). This can be explained by the surge in exports
(up 13 per cent) that was balanced by a decrease in imports (down seven
per cent). Trade remained import- oriented, making up about twice the
value of exported goods. The air mode's share of the total value of trade
with other countries dropped from a high of 23.4 per cent in 2000 to
20.9 per cent in 2003.
Of goods shipped by air, 84 per cent originated in or were destined
for eastern provinces. As expected, the United States, followed by countries
in Western Europe and Asia, were the main markets for trade with Canada
using air transport. For a regional breakdown of imports and exports,
see Table A9-14 in the Addendum. Table A9-15 in the Addendum breaks down
the commodity group for goods shipped by air. Not surprisingly, high-
value items such as machinery and electrical equipment, aircraft and
transport equipment, and other manufactured goods make up the majority
of the goods shipped by air.
Major Events in 2003
Infrastructure
Industry Structure
Freight Transportation
Passenger Transportation
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